Does Trade Pressure Undermine Corporate Green Transformation? Evidence from Anti-Dumping Investigation in China

Abstract

This study explores the impact of anti-dumping investigations on the environmental expenditure and green transformation of Chinese exporting firms. Drawing on a comprehensive panel dataset of listed firms from 2000 to 2016—merged with firm-level customs trade records and anti-dumping data from the World Bank Global Antidumping Database—a difference-in-differences (DID) framework is utilized to identify the causal effects of anti-dumping trade shocks. The findings reveal that anti-dumping investigations significantly reduce firms’ environmental expenditure and weaken corporate social responsibility (CSR), suggesting that institutional trade pressure crowds out sustainability commitments. While regional environmental regulation exerts a buffering effect, mitigating the adverse impact, the environmental policy stringency of export destinations does not demonstrate a significant moderating role. Further analysis shows that anti-dumping pressure also hinders firms’ broader green transformation, indicating long-term ecological setbacks beyond immediate financial disruption. By examining firm-level responses to external trade pressure, this study contributes new evidence on the ecological consequences of protectionism and emphasizes the importance of supportive regulatory environments for sustaining corporate green strategies. The results offer practical implications for aligning trade resilience with environmental objectives in the context of global sustainability transitions.